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Is JELDWEN (JELD) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is JELDWEN (JELD - Free Report) . JELD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.36, which compares to its industry's average of 34.01. Over the past year, JELD's Forward P/E has been as high as 29.81 and as low as 4.41, with a median of 14.73.

Another valuation metric that we should highlight is JELD's P/B ratio of 2.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.77. JELD's P/B has been as high as 3.30 and as low as 0.91, with a median of 2.53, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JELD has a P/S ratio of 0.56. This compares to its industry's average P/S of 1.35.

Finally, investors should note that JELD has a P/CF ratio of 11.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.65. Within the past 12 months, JELD's P/CF has been as high as 14.13 and as low as 3.72, with a median of 10.27.

These are only a few of the key metrics included in JELDWEN's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JELD looks like an impressive value stock at the moment.


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